China Isotopes & Radiation (01763.HK) releases its 2025 financial results, with the stock price surging at the open then plummeting

Recently, the leading company in nuclear technology applications under the China National Nuclear Corporation$CIRC (01763.HK)$ released its 2025 annual performance. During the reporting period, the company achieved revenue of 7.187 billion yuan (RMB, same below), which slightly declined year-on-year due to factors such as delays in medical equipment procurement. However, non-GAAP net profit attributable to shareholders increased by 12.5% year-on-year, and overall gross margin rose to 50.4%, reflecting continuous improvement in operational quality and demonstrating strong resilience in the nuclear technology application sector.

Specifically, China Isotopes & Radiation's core business structure remains robust. As the 'stabilizer' of revenue, the company’s radiopharmaceutical business generated annual income of 4.02 billion yuan in 2025, a year-on-year decrease of 3.5%, contributing over half of total revenue and nearly 80% of gross profit. Among this, revenue from imaging diagnostics and therapeutic radioactive pharmaceuticals grew by 3.8% year-on-year, while revenue from fluoride drugs surged by 33.3%. However, revenue from breath testing products fell by 9.6% due to centralized procurement impacts, and the company is actively responding through product upgrades and overseas expansion.

The radiological source business has become a growth highlight, with revenue from this segment reaching 810 million yuan for the entire previous year, representing a year-over-year increase of 12.4%. Benefiting from increased demand in the nuclear power market, revenue from neutron sources surged by 45.1% last year, while the industrial radiological source segment also performed impressively.

R&D and production capacity were both ramped up, with the company’s R&D investment reaching 585 million yuan for the full year. Six nuclear medicine products have entered phase three clinical trials, and the company achieved full self-control of the medical isotope supply chain for Carbon-13 and Carbon-14. The completion of key production capacities, such as the Jiachuan radiological source base and the Tianjin irradiation project, lays a solid foundation for future growth.

Notably, the company's international expansion has yielded significant results, with breath testing products under China Isotope & Radiation Corporation obtaining registration certifications in 12 overseas markets, including Saudi Arabia and Germany. Projects like the Bangladesh irradiation station and the Malaysia radiopharmaceutical production line are proceeding smoothly. A comprehensive output model combining 'equipment, technology, and services' is gradually maturing, which is expected to contribute incremental performance gains in the future.

However, in 2025, the one-time tax payment and late fees by a subsidiary of China Isotope & Radiation Corporation will pressure short-term reported profits. Excluding this impact, profit growth would return to positive. Meanwhile, delays in procurement of Class A medical equipment and certain policy-related disruptions remain concerns that need attention in the short term.

Alongside the earnings release, China Isotope & Radiation Corporation announced a total cash dividend of 0.3071 yuan per share for the 2025 fiscal year, amounting to nearly 100 million yuan. This dividend plan balances current profitability, cash flow conditions, and future development needs, reflecting the company’s commitment to sustained shareholder returns.

On March 30, China Isotope & Radiation Corporation’s stock price initially surged by nearly 9%, but it later reversed course after opening high, showing signs of weakness. By the close, the company’s shares fell by 4.55% to 20.14 Hong Kong dollars per share, valuing the company at 6.442 billion Hong Kong dollars.

As the first year of the '15th Five-Year Plan,' 2026 will see China Isotope & Radiation Corporation focusing on seven key areas, including radionuclides, nuclear medicines, and nuclear medical equipment, to drive coordinated growth. The company will accelerate the development of innovative drugs, localize equipment production, and expand internationally. Some institutions believe that, as the sole domestic platform covering the entire nuclear technology application supply chain, the company’s dual drivers of radionuclide self-reliance and overseas expansion present a clear long-term growth narrative, with short-term fluctuations unlikely to affect its fundamental value.

Author: Flying Fish

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